Sustainability strategy of Indonesian and Malaysian palm oil industry: a qualitative analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ratna Wardhani ◽  
Yan Rahadian
Keyword(s):  
Palm Oil ◽  
Stakeholder Engagement ◽  
Business Models ◽  
Oil Industry ◽  
Social Strategies ◽  
Content Type ◽  
Oil Companies ◽  
Sustainability Strategies ◽  
Sustainability Strategy ◽  
Study Results

Purpose Global palm oil production is growing rapidly, especially in Southeast Asia, with Indonesia and Malaysia as the biggest producers. Despite significant contributions to these countries’ economies, environmental and social aspects continue to be debated within this industry. The sustainability strategy is very important for the palm oil industry. This study aims to explore the sustainability strategy using six elements, namely, stakeholder engagement, governance and leadership, sustainability view and the economic, environmental and social strategies of Indonesian and Malaysian palm oil companies. Design/methodology/approach This study observes 21 Indonesian palm oil companies and 44 Malaysian palm oil companies from 2014 to 2018 with a total observation of 280 firm years. The methodology used in this study is a qualitative content analysis of six themes based on the sustainability strategy elements, which was further developed into 40 indicators. Content analysis is carried out on information published in annual reports and sustainability reports. Findings The study results indicate that stakeholder engagement, governance and leadership and strategic view of the palm oil companies in Indonesia and Malaysia are still likely to be weak. Palm oil companies have not demonstrated their focus on implementing economic, environmental and social strategies. Although the results indicate that there is a greater emphasis on environmental and social strategies than on economic issues, attention to both issues is still very low. Practical implications Palm oil companies need to integrate sustainability strategies in their business models and communicate them well to stakeholders to increase their competitive advantage in the palm oil industry. The government also needs to issue stricter rules and incentives to encourage companies to implement sustainability strategies. Social implications The study results provide implications for the communities around palm oil plantations to provide better social control so that companies can implement sustainability strategies in their business processes. Originality/value This study highlights the importance of sustainability practices integrated into palm oil companies’ business models, which have not been well implemented in the palm oil industry in the world’s largest producing countries.

Mexico's shale ambitions will have to wait

2016 ◽  
Keyword(s):  
Economic Development ◽  
High Risk ◽  
Oil And Gas ◽  
Oil Industry ◽  
Oil Price ◽  
Tight Oil ◽  
Shale Oil ◽  
Content Type ◽  
Oil Companies ◽  
Growing Crop

Subject Mexico's massive untapped shale oil and gas reserves. Significance Mexico has enough 'tight oil' and gas reserves to make the country energy independent again, according to some estimates. However, finding and developing those reserves will be a long, costly and high-risk endeavour. Unfortunately for Mexico's energy policymakers, the oil price crash has sapped the industry's appetite and ability to take on the challenge. It will be years before Mexico's shale industry regains the momentum that had started to build before the oil industry downturn. Impacts Mexico will grow increasingly reliant on US natural gas imports, providing opportunities for pipeline and other infrastructure builders. Shale development could bring economic development to some of Mexico's poorest regions. A growing crop of domestic oil companies stands to gain from tight oil production.

Turning potential collision into cooperation in Ghana’s oil industry

2015 ◽  
Vol 10 (2) ◽  
pp. 118-131 ◽  
Author(s):  
Kwesi Amponsah-Tawiah ◽  
Kwasi Dartey-Baah ◽  
Kobena Osam
Keyword(s):  
Oil And Gas ◽  
Oil Industry ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Content Type ◽  
Oil Companies ◽  
Critical Issues ◽  
Oil Sector ◽  
Stakeholder Interactions ◽  
Corporate Social

Purpose – This paper aims to examine the potential impact of the presence of oil resource on the Ghanaian society. Specifically, the paper investigates the relationship between key stakeholders in the oil sector, how stakeholder interactions create the potential for collision and advances measures aimed at turning possible collision into cooperation. Design/methodology/approach – The paper uses a literature review-based approach, drawing on existing literature in a number of areas including corporate social responsibility (CSR), oil and gas industry in Ghana and Nigeria as well as communication. Findings – The paper advances that expectations of stakeholders as regards oil being a panacea to all their problems must be managed to avoid possible collision. Additionally, Ghana’s oil industry must identify and engage all stakeholders in planning suitable and sustainable CSR programmes for economic development, thus fostering a friendly environment for oil companies. Transparency and accountability are also needed to promote cooperation rather than collision among stakeholders in Ghana’s oil industry. Originality/value – This paper raises and brings to the fore critical issues that can lead to potential collisions in the oil and gas industry in Ghana if not well-managed, and thus an innovative work in that regard.

Maintenance policy selection model – a case study in the palm oil industry

2014 ◽  
Vol 25 (3) ◽  
pp. 415-435 ◽  
Author(s):  
Siew-Hong Ding ◽  
Shahrul Kamaruddin ◽  
Ishak Abdul Azid
Keyword(s):  
Palm Oil ◽  
Selection Process ◽  
Oil Industry ◽  
Second Phase ◽  
Maintenance Policy ◽  
Content Type ◽  
Policy Selection ◽  
Optimal Maintenance ◽  
Optimal Maintenance Policy

Purpose – An optimal maintenance policy is key to the improvement of the availability and reliability of a system at an acceptable level without a significant increase in investment. However, the selection process is a complicated task because it requires in-depth knowledge on maintenance policies and on the technical requirements of maintenance. The difficulties and complexity of the selection process arise from the combination of conflicting maintenance constraints such as available spares, size of workforce, and maintenance skills. The paper aims to discuss these issues. Design/methodology/approach – The proposed maintenance policy selection (MPS) model is separated into three major phases. The first phase identifies the critical system (CS) based on failure frequency. The failure mechanism in the CS is then analyzed by using a failure mode and effect analysis in the second phase. In the third phase, a multi-criteria decision making method, called the technique for order of preference by similarity to ideal solution, is adopted to identify an optimal maintenance policy that can minimize the failures. Findings – Through a case study, preventive maintenance was selected as the optimal maintenance policy for the reduction of system failures. The results obtained from the case study not only provide evidence of the feasibility and practicability of the developed model, but also test the acceptability and rationale of the developed model from the industry perspective. Valuable knowledge and experience from employees were extracted and utilized through the proposed model to rank the optimal maintenance policy based on the capability to reduce failure. Originality/value – The practicality of the MPS model is justified through an implementation in the palm oil industry. The application of the MPS model can also be extended to other manufacturing industries.

Developing an innovative business model for hospital services in Iran: a case study of Moheb Hospitals

2019 ◽  
Vol 32 (1) ◽  
pp. 129-147 ◽  
Author(s):  
Marjan Miremadi ◽  
Kamyar Goudarzi
Keyword(s):  
Health Care ◽  
Business Model ◽  
Health Care Services ◽  
Business Models ◽  
Single Case ◽  
Quality Health Care ◽  
Content Type ◽  
Study Results ◽  
Quality Health

PurposeThis paper aims to focus on the role of hospital business models by examining the innovative business model of Moheb Hospitals, which have successfully achieved the goal of reducing costs and delivering high-quality health-care services in Iran by encouraging public–private partnership.Design/methodology/approachThis paper is a single case study.FindingsThe study results illustrate the hospital’s current business model and its underlying elements. After presenting the findings, this paper is concluded by presenting the standing issues that should also be addressed and how improvements and adjustments can be made.Originality/valueThis study offers new insight to identify and analyze the shortcomings of health-care sector in Iran and introduces new methods to efficiently use current competencies.

Sustainable manufacturing practices in Malaysian palm oil mills

2017 ◽  
Vol 28 (3) ◽  
pp. 278-298 ◽  
Author(s):  
Ilyana Abdullah ◽  
Wan Hasrulnizzam Wan Mahmood ◽  
Hafidz Fazli Md Fauadi ◽  
Mohd Nizam Ab Rahman ◽  
Saiful Bahri Mohamed
Keyword(s):  
Factor Analysis ◽  
Palm Oil ◽  
Sustainable Manufacturing ◽  
Pollution Prevention ◽  
Well Being ◽  
Factor Loading ◽  
Three Dimensions ◽  
Revealed Preferences ◽  
Content Type ◽  
Sustainability Strategy

Purpose The purpose of this paper is to investigate the implementation of sustainable manufacturing practices in Malaysian palm oil mills (POMs) by comparing the status of their current achievements and the levels of priority placed on their practices. Design/methodology/approach A questionnaire survey was used to collect data about 20 sustainable manufacturing practices from 51 POMs located in Malaysia. A five-point Likert scale was considered for recording variations in priorities and current practices with regard to sustainable manufacturing. A Cronbach’s α reliability test and a binomial test were undertaken to assess the internal consistency and the validity of the survey data. Spearman’s ρ correlation analysis was employed to determine the linear correlation between each of the sustainability practices identified. Factor analysis was conducted to reduce the number of sustainable manufacturing practices based on factor loading and to derive a clustering of these factors. Findings The results showed that employees’ well-being has the highest level in terms of both priority and current achievement. However, for other sustainable manufacturing practices, there was a difference where the current achievement of these practices in the Malaysian POMs was seen to be slightly lower than the priority given to them. Strong correlation of significant value was observed between the minimization of production waste and pollution prevention practices. From factor analysis, 15 practices of high factor loading were grouped into a proactive sustainability strategy and a preventive sustainability strategy. Research limitations/implications The study was still relatively exploratory. Future studies could investigate the barriers to the implementation of sustainable manufacturing practices at Malaysian POMs. The sample, which consisted of 51 Malaysian POMs, represented an important sector of the Malaysian economy. Reliance on stated, rather than revealed, preferences may limit the implications of the analysis undertaken for this study, but it does represent a major step forward in understanding the past in what was a highly recommended sector for investigation due to the paucity of extant data. A more broadly based, random sample of POMs from other countries would provide a better understanding of issues related to sustainable manufacturing practices. Practical implications The results of this study can be used by practitioners to adjust the sustainable manufacturing practices currently applied and further studies may go on to examine the reasons and implications for discrepancies between priorities and desired sustainability goals in more detail. Originality/value The survey conducted about sustainable manufacturing practices amongst Malaysian POMs was focussed on the three dimensions of sustainability, namely, the economic, environmental, and social elements involved.

scholarly journals The Impact of Sustainable Certification on Financial and Market Performance: Evidence from Indonesian Palm Oil Companies

2021 ◽  
Vol 16 (8) ◽  
pp. 1495-1500
Author(s):  
Arif Imam Suroso ◽  
Hansen Tandra ◽  
Indra Wahyudi
Keyword(s):  
Palm Oil ◽  
Social Deprivation ◽  
Social Issues ◽  
Market Performance ◽  
Oil Industry ◽  
Panel Regression ◽  
Oil Companies ◽  
Land Clearing ◽  
Negative Impacts ◽  
The Impact

The palm oil industry is a strategic sector that plays an important role for national economics. Although the palm oil industry's role and contribution are high, land clearing and operation are often associated with environmental and social issues. The sustainable certification was then developed to ensure that palm oil companies can continue to operate without involving environmental and social deprivation. The previous research related to the impact of a sustainable certification found several positive and negative impacts on palm oil companies' performance in general. Therefore, this study aimed to determine the impact of sustainable certification on Indonesia's palm oil companies' financial and market performance. This research focused on 14 palm oil companies in Indonesia that went public with an observation year between 2014 and 2019. Analysis through panel regression found that sustainable certification has no impact on Indonesia's palm oil companies' financial and market performance. The study could be a recommendation and justification for palm oil companies for consider to take a sustainable certification.

scholarly journals Developing Value Proposition for Business Models of National Iranian Oil Companies

2018 ◽  
Vol 12 (1) ◽  
pp. 508-521
Author(s):  
Mohammadreza Khorshidi
Keyword(s):  
Business Model ◽  
Business Models ◽  
Oil Industry ◽  
Oil And Gas Industry ◽  
Structured Interview ◽  
Value Proposition ◽  
Oil Companies ◽  
National Oil Companies ◽  
A Value ◽  
Value Propositions

Abstract The Value proposition is one of the key aspects of a business model and plays a significant role in any business model. Nowadays, firms could be successful and even could be initiated, only when a value proposition of their business model is clarified precisely. There is a necessity for new studies in order to see whether National Oil Companies(NOCs) are promoting the proper business models that make them competitive. This research analyzes the value proposition and its influence on the NOC’s competitiveness and it supports to deliver the required products and services to their specific market segment and customers. The main objective of this research is to develop a value proposition for the business model of National Oil Companies(NOCs). This could enable firms to be more competitive in the oil industry, especially in the oil supply glut circumstance. In order to achieve this objective, the research methodology is based on the semi-structured interview with the main stakeholders in the oil industry which is NOCs. First, value propositions in the history of oil and gas industry are addressed in almost every decade, then five current or previous managers of National Iranian Oil Company are selected for the semi-structured interview to clarify the current market situation and eventually propose the desired value propositions for the business model of NOCs.

scholarly journals The effect of COVID-19 in European union on the performance of Indonesian publicly listed palm oil companies

Accounting ◽  
2021 ◽  
pp. 801-808
Author(s):  
Hansen Tandra ◽  
Arif Imam Suroso ◽  
Mukhamad Najib ◽  
Yusman Syaukat
Keyword(s):  
European Union ◽  
Palm Oil ◽  
Stock Exchange ◽  
Oil Industry ◽  
The European Union ◽  
Oil Companies ◽  
Industry Performance ◽  
Oil Palm Industry ◽  
The Impact

One of the leading industries that affect economic growth in Indonesia is the palm oil industry. The role of this industry depends on the level of exports from European Union countries. Based on the COVID-19 pandemic situation, international trade activities are hampered and could affect industry performance from a stock perspective. Therefore, this study aims to explore the impact of the COVID-19 cases that occurred in the European Union and related macroeconomic variables on the stock performance of the oil palm industry in Indonesia. This research also examines the impact of COVID-19 on certified sustainable companies and companies that are not certified. Panel regression was applied in this study with Eviews 11 Software.This research's observations are 13 palm oil companies in Indonesia which are listed on the Indonesia Stock Exchange (IDX) from March 2, 2020, to August 31, 2020. This study's results reveal that the world CPO prices and market capitalization affect the activities shares of palm oil companies in Indonesia.Meanwhile, from the grouping of certifications within companies, the impact of COVID-19 in the European Union was more substantial on companies that were certified as sustainable. Based on these results, The COVID-19 case in the European Union must be a concern for palm oil companies in Indonesia.

scholarly journals Exploring Sustainability Reports in The Indonesian Palm Oil Industry

2021 ◽  
Vol 1 (1) ◽  
pp. 77-94
Author(s):  
Nurhayati Soleha ◽  
Rita Rosiana
Keyword(s):  
Palm Oil ◽  
Stock Exchange ◽  
Sustainability Reporting ◽  
Oil Industry ◽  
Relevant Information ◽  
Oil Companies ◽  
Environmental Disclosures ◽  
Sustainability Reports ◽  
Sustainability Initiatives

The purpose of this study is to assess the quality and maturity of sustainability reports of palm oil companies listed on the Indonesia Stock Exchange (IDX).  The findings indicate that there are few differences in the maturity levels of palm oil companies in implementing sustainability reporting based on GRI standards and the maturity sustainability reporting at a moderate level of relevant information. The majority of disclosure of sustainability reports is general disclosures and less present in economic and environmental disclosures. Companies need to improve the quality of their sustainability reporting and strengthen the validity of the measurement. Sustainability reports have the potential to improve the sustainability agenda by allowing management and shareholders to make more informed decisions about sustainability initiatives.

The effects of strategic choices and sustainability control systems in the emergence of organizational capabilities for sustainability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Karola Bastini ◽  
Fares Getzin ◽  
Maik Lachmann
Keyword(s):  
Control Systems ◽  
Design Methodology ◽  
Corporate Sustainability ◽  
Organizational Capabilities ◽  
Strategic Choices ◽  
Content Type ◽  
Sustainability Strategies ◽  
Sustainability Strategy ◽  
Organizational Determinants ◽  
Levers Of Control

PurposeThis study explores the relations among corporate sustainability strategies, the intense use of sustainability control systems (SCSs) to implement these strategies and the emergence of organizational capabilities for sustainability.Design/methodology/approachUsing survey data from a sample of 157 European firms across different industries, the authors explore differences between reactive and proactive sustainability strategies in their impact on the intense use of SCSs. The authors analyze the joint impact of a proactive sustainability strategy and an intense use of SCSs on the emergence of the organizational capabilities of sustainable market orientation, sustainable organizational learning and sustainable innovation. Furthermore, we explore the relevance of single levers of control for these capabilities.FindingsThe results show that a proactive sustainability strategy is associated with an intense use of SCSs and with the development of the three organizational capabilities. The authors provide evidence that the intensity of use of SCSs mediates the association between proactive sustainability strategy and the emergence of the three organizational capabilities. An interactive use of controls is constantly more important than a diagnostic use of controls in the emergence of the three capabilities.Originality/valueThe findings provide novel empirical evidence on the mechanisms through which corporate sustainability strategy is implemented in European organizations. The results contribute to an improved understanding of the organizational determinants underlying the development of organizational capabilities for sustainability.

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